Frequently asked insurance questions
What is car insurance?
Vehicle insurance (or car insurance) is your financial protection against unforeseen damage to your vehicle (be it a motorbike, truck or car) in a traffic related incident. Vehicle insurance should be seen as a safety net, there to protect you and offer you financial security. So it is recommended to update your insurance from time to time to ensure your vehicle is matched with the most cost effective insurance policy.
What can be protected?
Car insurance policies range in price and cover. They will protect you from incidents such as theft or damage to your car or injuries to yourself in the event of a car accident.
What to consider when choosing your insurance?
Car insurance prices differ from circumstance to circumstance, and there are many factors to consider when choosing the ideal car insurance to suit your needs. (1) Age of your car: The model and year of your car are very important to an insurer. If you own your car outright you may not want or need comprehensive cover. (2) The age of your car will also determine the insurance premium. An old car (as long as it isn’t a collector’s item) will likely have a cheaper insurance premium than a new car.
What are the main factors that will affect my premiums?
Both you and your car influence your insurance premium. (1) Your car: the make and model of your car, including the engine size and police records of the likeliness of your type of car being stolen influence your premiums. (2) Yourself: your age and stage of life (single, married) will also influence your premiums.
Can I get cheaper car insurance than what I currently have?
Yes. As you mature into a safer driver and as your car gets older your premiums should drop.
What is an insurance premium?
A premium is the amount you pay per month to your chosen insurance company. Paid yearly or monthly.
What is a deductible?
In the event of a claim you will be paid out by your insurer. However certain amounts will be required to be paid by you. The sum of money paid by yourself is called the deductible. Insurance with high premiums often have lower deductibles than insurance with lower premiums.
What is comprehensive coverage?
Comprehensive coverage covers your vehicle on and off the road, in and out of a collision. Comprehensive coverage insures you against theft, smashed windows, damage resulting from a fallen object, storms and even natural disasters.
Useful articles on Car Insurance:
Everything you need to know about Car Insurance
- Car insurance explained – Third Party, Fire, and Theft
- Top tips to save on your car insurance